HomeMy WebLinkAbout0947 Uti~rc~Ryt Covt:NANT~ Harrower and l.rnder rovenant and agree as follows:
1. Payment ot N~incipal and lnteresh Prepayment and Late Charges. Rorrower shall promptl~~ pay wh~n duc
the principal of and interest on the debt evidenceci by the Note and any prepayment and late charges due under thc Note.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by l.ender, Aarrower shall pap
ta Lender on the day manthly payments are due under the Note, until the Note is paid in full, a sum {"fiunds") equal to
one-twelfth of: (a) yearly taxes and assessments which may attain priority aver this Sccu~ity Instrument; (b) yearly
leasehold payments or ground rents on the Property, if any; (c) vearly hazard insurance premiums; and (d) yeariy
mortgage insurance premiums, if any. These items are called "escrow items." Lender may eslimate the Funds due an the
basis oPcurrent data and reasonable estimates of future escrow items.
The Funds shaii be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
state agency (including Lender if Lender is such an institution). Lender shal! apply the Funds to pay ihe escraw items.
Lender rr~ay nat charge for holding and ~pplying the Funds, analyzing the account or verifying the escraw items, untess
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
Leader may agree in writing that interest shal( be paid on the Funds. Unless an agreement is madc ar applicable law
requires interest to be paid, Lender shall not be required b pay BarroH~er any interest or earnings on the Funds. Lender
shall give to Horrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
pu~pose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
this Security instrument. ,
If the amount of the Funds held by Lender, together with the future monthiy payments of Funds payable prior to
the due dates of the escrow items, shatl exceed the amount required to pay the escrow items when due, the excess shall be,
at Barrower's opt'scn, PithPr nromptly repaid ta Borrower or creniieri io Sorrower on monthly payments of Funds. If the
amount af the Funds hetd by Lender is not sufTicient to pay the escrow items when due, Borrower shall pay to Lender any
amounl necessary to make up the deficiency in one or more payments as required by Ler~der.
U~n payment in full of all sums secured by this Security Instrument, Lender shal! promptly refund to Borrowcr
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
than immediately prior to the sale of the Properiy or its acquisition by Lender, any Funds held by Lender at the time of
applicatiaii as a credit against the sums secured by this Security Instrument.
3. Application of Yayments. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, t~ principa! due.
4. Charges; Liens. Borrower shall pay ail taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall `
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shali promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptiy discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
prevent the enforcement of the tien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
~ agreement satisfactory to Lender subordinating ihe lien to this Security Instrument. If Lender determines that any part of
the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
' notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
5. Hazard Insurance. Borrower shall keep rhe improvements now existing or hereafter erecteci on the Property
insured against loss by fire, hazards included within ihe term "extended coverage" and any other hazards for which Lender
requires insurance. This insurance sha;; ~.~~a;r,;a~~~cd in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
unreasonably withheld.
All insurance policies and renewals shall be acceptable to Lender and shalt include a standard mortgage clause.
Lender shali have the right to hotd the policies and renewals. If Lender reyuires, Borrower shal) promptly give to Lender
ap receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
carrier and L.ender. Lender may make proof of loss if not made pfomptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair :j
of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
` restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
applied to the sums secured by this Security lnstrument, whether or not then due, with any excess paid to Borrower. If
Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has
offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period w~il) begin '
- when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
~ postpone the due date of the monthly payments referred to in paragraFhs 1 and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquired by Lender, BQrrower's right to any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
Instrument immediatety prior to the acquisition.
6, prPsQrv~tion and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
_ change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions ot the lease, and if Borrower acquires fee tiile to the Property, the leasehold and
~ fee title shall not merge unless Lender agtees to the merger in writing.
7. Protection of Lender's Rights in th$ Property; l~iortgage Insnrance. If Borrower fails to perform the
s covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly aftect
Lender's rights in the Property {$uch as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
. regulations), then I.ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
in the Ptoperty. Lender's actions may include paying any sums secured by a lien which has priority over this Security
- Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make rePairs. Although
. . Lender may take action under this paragraph 7, L,ender does not have to do so.
s Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
• Securiry Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
~ • the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
_ requesting payment.
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